03.03.202217:20 Forex Analysis & Reviews: The cryptocurrency market has moved to a decline

At the auction on Thursday, the value of the BTC is falling after an active growth at the beginning of the week. So, at the time of writing, the price of the first cryptocurrency has rolled back to around $ 43,700, having lost about 2% in a day.

Leading altcoins willingly adopted the trend of the main virtual asset and began to decline spectacularly. So, over the past 24 hours, the Avalanche coin has lost 5% of its value, Ethereum - 3.3%, and the price of Terra and XRP tokens has decreased by 1%.

According to the world's largest aggregator of data on virtual assets CoinGecko, over the past day, the total capitalization of the crypto market has decreased by 2.5%. At the same time, the Bitcoin dominance index is near the level of 43.2%. The indicator of fear and greed decreased by 13 points to 29.

Digital gold began to show a turn to negative dynamics on the approach to the key resistance mark of mid-February - $ 45,000. In the past month, the main virtual asset could not cross this important level and began to roll back down.

Despite the decline in the global cryptocurrency market on Thursday, Bitcoin trading volumes have grown significantly over the past week amid the military conflict between Ukraine and Russia.

Thus, institutional investors and large asset holders (crypto-whales) are actively buying digital gold and looking for alternative instruments in the face of increasing geopolitical tensions in eastern Europe. According to CoinShares, over the past week, cryptocurrency funds recorded net inflows of private investment by $ 36 million, and since the end of January - by $ 239 million.

On the last day of February, the value of the military-technical complex increased by more than 15% against the background of the announcement by the US Treasury Department of the imposition of sanctions against the Central Bank of the Russian Federation and the freezing of some assets of the country. Many European states have made similar decisions regarding Russia. Frightened by the harsh sanctions, the Russians began to withdraw ruble assets that were losing value and invest them in digital currencies. Thus, compared to the turbulence in the world's leading markets, the crypto market has not yet experienced serious losses and is becoming an attractive investment for individuals, businesses, and government agencies around the world.

The advantageous position of the digital coin market allows experts to make the boldest predictions about its future. On the eve, the founder of the financial consulting and asset management company Devere Group, Nigel Green, said that every day the BTC is becoming more attractive for investments. This, in turn, strengthens Bitcoin futures ETFs and exchange-traded funds tied to digital assets. Green is confident that in the near future, the price of digital gold will permanently increase and by the end of March will reach $ 50,000.

At the same time, the crypto expert emphasizes that the main secret of bitcoin's stability in the current crisis is its decentralization and protection from unauthorized access to the network. Institutional investors are increasingly acquiring cryptocurrencies, their trust in the BTC is permanently increasing, while the volatility of bitcoin, on the contrary, is constantly decreasing.